Recently I happened to be perusing the report on “Future Supply Chain Management”.
The title was intriguing and the contents were illuminating…. 🙂 🙂
ℹ Basically the report argued on serving customers in the sustainable way.
The Current supply chain designs are primarily aimed at improving on-shelf availability, reducing cost and supporting sound financial figures (like ROI or return on brand equity).
In the future, the industry must design for additional parameters like CO2 emissions reduction, reduced energy consumption, better traceability and reduced traffic congestion.
The impact of these new parameters on the current bottom line may not yet be substantial but will grow in the coming years and efficiency improvements will almost certainly be realized.
Supply chain strategy needs to look ahead and give priority to these parameters.
All stakeholders in the supply chain will need to play their part to accomplish this change. Consumer awareness and demand for new products and services will also accelerate the adoption of new practices.
❗ How should the industry build the future supply chain and what are the components?………..
To answer that question, four key elements were taken into account,
- Solution areas
- Leading practices
- Application to example supply chains
- New ways to calculate the impact on the supply chain
The solution areas cover existing challenges and those anticipated for the coming decade. The solution areas are focused on physical supply chain innovation & seven key solution areas were identified,
- In-Store Logistics – Includes in-store visibility, shelf-ready products, shopper interaction
- Collaborative Physical Logistics – Shared transport, shared warehouse, shared infrastructure
- Reverse Logistics – Product recycling, packaging recycling, returnable assets
- Demand Fluctuation Management – Joint planning, execution and monitoring,
- Identification and Labelling
- Efficient Assets – Alternative forms of energy, efficient/aerodynamic vehicles, switching modes,green buildings
- Joint Scorecard and Business Plan
Examples of existing leading practices are integrated into the model to show how they help to address these solutions areas.
These leading practices make it clear that benefits are real and achievable.
3.Application to example supply chains
Simplified supply chains are used to demonstrate how the new supply chain model can work and how it can be adapted to individual companies.
In each case,appropriate new solutions are posed, taking into account the main characteristics of the example supply chains.
4.New ways to calculate the impact on the supply chain
These calculation models, using the new parameters, are an essential element of the future supply chain in determining the impact of the leading practices and solutions.
“Feasibility studies and collaborative supply chain scenario pilots are among the critical next steps that must be taken to ensure that the future supply chain
reacts to and satisfies tomorrow’s consumers”.
“The supply chain lies no longer with an individual company; we have global networks cutting across countries and organisations. The only way forward is to get players working to a common agenda – the collaboration agenda. We have been taught to compete: nobody has taught us to work together. The need and awareness is there but still nobody has taught us how to do it”. (Professor Alan Waller)